Car repair bills to fall as EU opens up parts market

fjon

From the Indo today:

Car repair bills to fall as EU opens up parts market


MOTORISTS can look forward to lower car repair bills after the European Commission yesterday announced new rules to open up the parts industry to competition.

The commission claims the move will slash repair bills. The new rules, outlined in detail last month by the Irish Independent, will end design protection for parts such as mirrors, bumpers, body panels or lights. These comprise about one-quarter of the EU spare parts market.

Original parts are a gold mine for car-makers in a cut-throat market. The spare parts industry accounts for 40pc of their gross profits, a commission study reveals.

The effect of the rules is that the car manufacturers can not restrict repair shops from fitting non-branded but identical parts.

Last night car-makers claimed parts not affected by the new rules, such as crashed doors or windscreens, will be hiked up as a result of the changes. But they held out some hope they could still steer around the most damaging effects of the rules during negotiations in coming months.

The man behind the drive, Internal Market Commissioner Frits Bolkestein, wants to push through the new laws before quitting office next month, just before outgoing Finance Minister Charlie McCreevy takes over the portfolio.

Mr Bolkestein's plans are designed to to fully liberalise Europe's €10bn parts market to give consumers a wider choice. It will allow independent car part manufacturers to compete with the car-makers throughout the 25-nation EU ending carmakers' near-monopoly.

He said: "If you need an external part for a car in some member states you can only get it from the original manufacturer. That is anti-competitive and unjustifiable. People are entitled to value for money."

Jim Murray, chief executive of the European consumers' group, BEUC said: "There isn't a car driver in Europe who hasn't been shocked by the cost of spare parts, so this will improve the situation. Motorists across Europe should welcome this, including Ireland."

He rejected claims it would push up motoring costs. "The car-makers are crying wolf. If they say new cars will be more expensive, then it's conceding there isn't competition in the air right now."

Fine Gael's new MEP, Mairead McGuinness cited figures from the European Federation of National Insurance Associations, which claims that the average price of spare parts in countries where the market is liberalised - like in Belgium and Britain - are nearly 10pc lower than where monopolies exist.

Gmodified

this isn't going to change dealers repair prices as some parts could be only purchased from the manufacturer.

mike65

The commission claims the move will slash repair bills. The new rules, outlined in detail last month by the Irish Independent, will end design protection for parts such as mirrors, bumpers, body panels or lights. These comprise about one-quarter of the EU spare parts market.

I'm slightly sceptical about this not cos it wont be good but because its already happened after a fashion. If I went to my local Mercedes dealer for a
headlight lens it would cost about 50% more than buying from someone like German Auto Parts or GSF, the parts the latter sell are perfectly road legal and indeed often made by the same ppl.

Mike.